Sector News

Sanofi sells another castoff to private equity firm after last year’s $2.2B Zentiva deal

September 11, 2019
Life sciences

Sanofi India is selling a 32-year-old plant in Ankleshwar to a private equity firm as Sanofi focuses in the country on branded drugs like multiple sclerosis drug Aubagio. (Sanofi India)

Private equity investor Advent International has picked up another piece of Sanofi that it is shedding as the French drugmaker sharpens its focus on branded drugs. After laying out $2.2 billion for Sanofi’s generics operation Zentiva last year, it has followed up with a much smaller deal.

Sanofi India today announced the sale of a manufacturing plant in Ankleshwar, Gujarat to Advent’s Zentiva for Rs 2,617 million ($36.5 million). The 32-year-old plant produces intermediates and formulations and has an annual capacity for more than 6 billion tablets.

“Sanofi’s long-term strategy is to focus on manufacturing Sanofi branded products. Given that the two companies share similar values and commitment towards serving patients and their employees, the Board of Directors of Sanofi India Limited approved this transaction in the long-term interest of all stakeholders.” Rajaram Nayayanan, managing director of the Sanofi company, said in a statement.

The Ankleshwar plant, the oldest of Sanofi India, produces products such as pain reliever Combiflam, hay fever treatment Allegra and diabetes treatment Amary. Production of those drugs will be transferred to other Sanofi plants, the company said.

Advent, which buys pharma and other businesses globally, last year completed a $2.2 billion deal for Zentiva, after Sanofi looked for a buyer for a couple of years. Sanofi had acquired control of the Czech generics operation in 2008 for $2.6 billion.

Advent has been mentioned as among potential buyers for assets that GlaxoSmithKline and Pfizer will shed to satisfy regulators as they prepare to merge their consumer drug businesses later this year.

By Eric Palmer

Source: Fierce Pharma

comments closed

Related News

May 21, 2022

As monkeypox cases emerge in US and Europe, Bavarian Nordic inks vaccine order

Life sciences

A monkeypox outbreak is emerging in the U.S. and Europe, and at least one country is amping up countermeasure preparedness. Bavarian Nordic has secured a contract with an unnamed European country to supply its smallpox vaccine, called Imvanex in Europe, in response to the emergence of monkeypox cases, the Danish company said Thursday.

May 21, 2022

Moderna chairman Afeyan defends hiring practices after CFO debacle: report

Life sciences

Moderna’s recent chief financial officer debacle—in which Jorge Gomez departed on his second day on the job—raised questions about the company’s hiring process given its rush to global biopharma prominence. The most obvious one: How was it possible for Gomez to be hired when he was under investigation by his previous employer, Dentsply Sirona of Charlotte, N.C.

May 21, 2022

Merck to pay up to $1.4B in cancer deal with Kelun, but details are scarce

Life sciences

Merck & Co. is plucking a cancer project from the branch of Chinese-based Kelun Pharmaceutical for up to $1.4 billion, but details from the New Jersey-based Big Pharma have been hard to come by. The deal, first disclosed Monday on the Shenzhen stock exchange, has Merck handing over $47 million in upfront cash in exchange for ex-China rights to a “macromolecular tumor project.”